Canadian dollar is getting hit hard this morning thanks to Trump’s twitter tirade

The Canadian dollar fell against all its major peers after U.S. President Donald Trump revoked his support for a joint Group-of-Seven statement and criticized his neighbouring leader Justin Trudeau.

The U.S. dollar was steady as investors awaited a series of major risk events this week, including a summit between Trump and North Korean leader Kim Jong Un in Singapore on Tuesday and meetings of the world’s three-biggest central banks on following days. The Japanese yen halted a two-day winning streak.
Monday morning the Canadian dollar was down 0.43 US cents at 76.89.

“The Canadian dollar is facing selling pressures as the G-7 summit reinforced the confrontation between Canada and the U.S., particularly concerns about U.S. targeting automobile sector which is a huge blow for Canada,” said Ko Haruki, head of the financial solutions group at CIBC World Markets (Japan) in Tokyo. “CAD is also weighed by fundamentals after a weak employment report last week.”

“I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!,” Trump tweeted Saturday evening while en route to Singapore aboard Air Force One. Trump’s economic adviser Larry Kudlow said on CNN’s “State of the Union” Sunday the Canadians “stabbed us in the back.”

Based on Justin’s false statements at his news conference, and the fact that Canada is charging massive Tariffs to our U.S. farmers, workers and companies, I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!